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HEG LTD
HEG Ltd earlier recommended at Rs.218 /- ( Old posting HERE) and currently trading around Rs.232/-
Company posted 165 % jump in next profit in latest September quarter,Recommending to hold it for long term

25 comments
:

sir,The profit of HEG from operating activities after finance cost but before exceptional items has fallen considerably.The only reason the net profit rose is because the company did not report any forex loss in this quarter.1.My first concern is that the company reported forex losses in the last 5 quarters.Does it indulge in aggressive currency hedging?2.The profit from operating activities has fallen.Is is a healthy sign?The only comforting factor is that the promoters have bought aggressively in this stock.Please share your views sir

Congrats to all who bought at lower levels. I also read that company is expected 2nd qtr to be better which is in line with what VP sir has mentioned.The company is expected 350 cr increase in topline in 2015 once their JV goes full stream.To my surprise, company is expected to complete construction of their JV business by 2nd qtr of next year whereas we were expecting dec 2013 so its on stream and will be completed 1 qtr earlier.

VP sir, sometimes i dont get reason why stock doesn't move despite giving good results. For ex, see in the case of Granules, profit is up by more than 200% and still no movement. Generally stocks blasts after magnisifant results. How to look at or interpret such a situations?I'm not suspecting granules fundamentals but just mentioned as an example with respect to other stocks.

Its because the stock market anticipates the results and the effects is reflected in the price.The only way a stock can rise as soon as the results are announced is to beat the market forecast.Generally the sharp rise and fall of the stock price post results is more like a knee jerk reaction .

This is the trend we are seeing in many stocks during the result declaration time.Some short term players entering in stocks just few days before result and they are exiting on the day or following day of result for making some quick money .Irrespective of the quality of result they will exit and enter another stock which is due for result on the following days.This creates volatility in these days.In many cases they are taking positions without full payment and forced to close out position in stipulated time .Only after this phase stock price move in the true direction.Don't worry about these type movements .Stick to quality and take this type movements as opportunity to enter into good stocks.Our aim is create wealth over long term and not making few rupees over night.

Hats of to your service for retail investors like us. We are very grateful to you in every means. I'm seeing good profits after a long time. I'm in mid 30's and a long term investor and will hold my stocks for at least another 10-15 years. I have a gut feeling that India's growth story just started and we are going to gain immensely. I just want to know your view on your past recommendation Sanco Transport. Is it still a hold for long term and can buy more?

Stanley ,Hold it now.One more suggestion - many people saying this stock is good for 10 years, 20 years ..etc.In my opinion ,we can't guarantee that for a long time since the consumer preference ,technology .govt policies ..etc are changing very fast .So review ,revision and corrective steps are necessary periodically in any stock.

I don't like the way the entire RPG group treating minority share holders.So I will not recommend anything from this group .Price may move up or down , I don't bothered .A stock is good or bad for me is not entirely depends only on price movement.

Dear VP ji . I salute your knowledge and depth of coverage of the stocks recommended. Kindly suggest some basics on stock investing and the sources of information one should follow to make an informed decision like yours.